Case 20— Southwest Airlines in 2010: Culture, Values, and Operating Practices
Southwest Airlines has become the market-share leader in domestic air travel in the United States. This quirky but scrappy airline started small and now transports more passengers from U.S. airports to U.S. destinations than any other airline. Their market symbol is (LUV). They’ve emphasized a low cost, low price, and no frills strategy that has worked well for them. In May 2011, Southwest acquired AirTran Holdings, Inc., the parent of AirTran Airways. This was a major acquisition for Southwest and presents some management challenges for its continuing success. Is it possible that Southwest will continue to achieve the success to which it’s accustomed while integrating AirTran into its organization?
Read through Case 20—Southwest Airlines in 2010: Culture, Values, and Operating Practices
Carefully go through all chapters covered in your course and analyze the Southwest Airlines case within the frameworks available. In addition to the case material in the textbook, review the video for Case 20 available on the My Courses page of your student homepage. Because this situation is fluid, there’s no correct or incorrect answer; what’s important is your application of course materials and the process of your analysis. Begin with a SWOT analysis, in which strengths include the firm’s market share and weaknesses include the firm’s cost trends. Feel free to review the many business articles on Southwest, the stock chat message boards (forsentiment), and any source of information you feel is helpful. Remember to provide citations for any material from which you quote verbatim.
Your paper should provide answers to the following questions: